Thursday, January 8, 2009
Bill Gross: We've Got a "Ponzi-Style Economy"
Bill Gross is managing director of the world's largest bond fund, Pimco, which manages some $790 Billion Dollars in assets. Pimco also is managing the commercial-paper assets for the Federal Reserve as part of the government's Commercial Paper Funding Facility program. As such, Pimco is in many ways an insider.
In his January 2009 Investment Outlook, Gross writes that it is not only Madoff who ran a Ponzi scheme, but the entire U.S. economy is a Ponzi-like scheme. He calls it "our Ponzi-style economy".
This may be obvious to many of us. But the fact that Gross said it is news.
5 comments:
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Posts
Great Norther Lights Photo. The world is embroiled in a Ponzi scheme as the neon shines brightly.
ReplyDeleteThere seems to be no limit to the abuse American citizens are willing to tolerate. So why do we blame those in power for taking all we have? We are an armed society without the will to fight. Good luck to us all.
ReplyDeleteMust read L.A. Times
ReplyDeleteCalifornia controller to suspend tax refunds, welfare checks, student grants
http://www.latimes.com/news/local/la-me-budget17-2009jan17,0,4472460.story
http://demonsdialog.blogspot.com/2009/01/big-brother-getting-bigger-newark-nj.html
ReplyDeleteIt is clearer now that the improbable and spectacular performance of the stock markets in 2009 has been a Ponzi-like scheme orchestrated by the likes of GoldmanSachs and the Wall Street with hugely leveraged help from Obama, Bernanke, Geithner, et al. What is interesting is that the small investors have not been duped into the scheme generally so far. So my question is this. What happens when the Ponzi scheme collapses, and the market tumbles? What will happen to GS and other Wall Street insiders? Will they make the tremendous profit by selling short?
ReplyDelete